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      An index of corporate financial performance

      Global corporate financial performance saw a slight dip this quarter, likely driven by the ripple effects of evolving trade landscape across key regions. With most sectors reporting lower scores, the data reveals a notable rise in the number of zombie companies worldwide.

      Keep abreast of financial performance with our latest data driven insights (2Q25 insights).

      Discover which jurisdictions are performing among the best. Assess financial performance across sectors. Identify distressed companies. Compare your company’s financial performance against tens of thousands of public companies around the world. KPMG’s Financial Performance Index (FPI) is designed to be one of the clearest indices of corporate financial performance.

      For investors, financiers, regulators and governments, the KPMG FPI seeks to provide insights into the relative strength and health of key markets and sectors. With millions of data points going back to 2017, these long-term trends can help you spot signs of improvement or impending distress.

      Updated quarterly, this webpage allows you to interact with the data to analyze shifts, trends and related opportunities. You will also find key highlights from the most recent quarter and a spotlight on fast-moving industry sectors.

      • Global economic headwinds, fueled by geopolitical tensions and policy uncertainty, are creating a challenging environment for businesses. Elevated debt levels, persistent inflation and ongoing geopolitical instability pose significant downside risks to the global outlook, potentially impacting corporate earnings and valuations.
      • While structural reforms and the increasing adoption of AI offer glimmers of hope for medium-term economic recovery, the KPMG FPI data reveals a tangible weakening of corporate fundamentals and increasing financial stress across sectors.
      • Global FPI scores dipped to 90.0 in 2Q25, down from 90.2 in the previous quarter. Several economies including Canada (69.3), Australia (72.1), Thailand (80.4), Malaysia (82.4) and Hong Kong (SAR) (84.5) registered FPI scores below 85, highlighting increased financial vulnerability in these markets.
      • At a regional level, modest improvements were experienced by North America (up 0.9 points to 86.3) and Oceania (up 0.8 points to 74.5). However, all other regions experienced declines with South America (down 0.9 points to 91.6) and Africa (down 0.6 points to 92.3) registering the most significant drops, followed by Europe (down 0.5 points to 88.8) and Asia (down 0.3 points to 91.5).
      • Sector-specific FPI data reveals further vulnerabilities. Raw Materials and Natural Resources, Biotechnology, and Energy all recorded scores below 90, indicating heightened financial stress in these sectors. The decline was broad-based, however, with 15 out of 24 sectors experiencing a decline in their FPI score in 2Q25, a contrast to the previous quarter’s stability.
      • There was also an increase in the number of zombie companies (those that scored an FPI of zero for more than three quarters), with numbers increasing from 1,328 in 1Q25 to 1,435 in 2Q25. Zombie companies accounted for approximately 3.4 percent of the total companies analyzed in the quarter.

      • 2025 started with an increase in overall FPI scores from 88.2 in 4Q24 to 90.2 in 1Q25 (up by 2.1 points). All regions experienced a mixed trend in FPI scores in 1Q25. Oceania witnessed the most significant increase from 67.2 in 4Q24 to 73.7 in 1Q25.
      • From a national standpoint, most countries, excluding a few in Europe and Asia, demonstrated an increase in FPI scores in 1Q25. However, even among the countries experiencing a decline in FPI scores, the index remained within the positive range of 83 to 94 points.
      • Canada, Hong Kong (SAR) and Australia displayed predominantly positive momentum, showcasing robust growth of 54.4, 11.4 and 10.4 percent respectively from the previous quarter. Taiwan led the global ranking with an FPI score of 97.8, followed closely by Portugal with an FPI score of 97.4.
      • Across sectors, 1Q25 saw broad-based FPI improvement. The Raw Materials and Natural Resources sector experienced the largest gains, surging 8.7 points to 85.4. Aerospace and Defense and Energy also saw notable improvements, rising to 94.9 and 90.7 respectively. Except for Raw Materials and Natural Resources and Biotechnology, all sectors achieved FPI scores above 90, signaling robust financial health.
      • There was also a decrease in the number of zombie companies (those that score an FPI of zero for more than three quarters), with the numbers falling from 1,373 in 4Q24 to 1,328 in 1Q25. Zombie companies accounted for approximately 3.2 percent of the total companies analyzed in the quarter.

       

      • Global FPI scores increased from 87.4 in 3Q24 to 88.2 in 4Q24. Argentina led the global rankings with an FPI score of 96.7.
      • The other top performing countries were primarily based in Asia, the Middle East and Europe, namely Saudi Arabia, Portugal and Japan. Some European markets also performed well from the previous quarter, such as the UK and Ireland. 
      • At a regional level, South America was the only region to experience a decline of 0.9 points (to an FPI score of 90.1). North America and Africa recorded an increase in FPI scores to 82.5 and 92.0 respectively. Oceana witnessed a notable increase in FPI scores (up by 5.4 points to 67.2).
      • At a country level, 4 out of every 5 countries in our research recorded FPI scores of more than 85. Canada showed a notable improvement in 4Q24, increasing by 14.5 points to 43.9.
      • Most of the sectors reported FPI scores in the range of 85-95 points in the fourth quarter of 2024 with Equity Real Estate Investment Trusts (REITs) (FPI score of 94.8) emerging at the top, and Raw Materials and Natural Resources (FPI score of 76.7 points) at the bottom. Notably, for the first time in the year, none of the sectors recorded scores above 95 points.
      • There was also an increase in the number of zombie companies (those that score an FPI of zero for more than three quarters), with numbers increasing from 1,344 in 3Q24 to 1,373 in 4Q24. Zombie companies accounted for approximately 3.3 percent of the total companies analyzed in the quarter.

      What is the KPMG FPI?

      The KPMG FPI distills a range of market and financial performance indicators into a single index covering nearly 40,000 public companies around the world.

      The index scores companies on a scale of zero to 100, with zero indicating serious distress and 100 being best performing.

      Since many companies tend to perform well for most of their lifespans, there is a natural bias towards a higher quartile score. As such, around 80 percent of the companies in our index score between 85 and 99.

      As the KPMG FPI is a logit model, a drop below the average for a specific company can very quickly lead to an index score of zero.

      When exploring this data, therefore, readers should consider:`

      • The absolute score (zero to 100)
      • Comparisons across geographies
      • Comparisons across sectors
      • Relative performance against peers
      • Trends over time
      • Macro events which are driving trends and
      • Expected macro events which may affect future scores.

      Read more about our methodology.

      Want to see your company’s score?

      To understand your company’s current index score, or to uncover deeper insights into specific markets or segments, contact your local KPMG member firm. KPMG’s global organization of professionals have the data, sector and geographic experience to help you understand your score and tie it back to your business needs. Whether it is benchmarking, identifying targets, comparing sectors, or looking for trends over time, KPMG professionals can connect you to the information you need to capitalize on your opportunities. That is our business. Please contact us at fpi@kpmg.com to find out more.

      Global performance

      The global corporate financial performance index decreased from 90.2 in 1Q25 to 90.0 in 2Q25, marking a fall of 0.2 points. Developed economies face slowing growth in 2025, hampered by trade tensions and policy uncertainty, with the Eurozone particularly vulnerable. Developing economies, led by growth in Asia, are also experiencing a modest slowdown, with China facing headwinds from property sector fragility and trade tensions.

      The FPI team anticipates a decline in scores in the upcoming quarter, attributed to a projected slowdown in global economic growth for 2025, primarily driven by uncertainties surrounding trade dynamics and immigration policies.

      Sector performance

      Raw Materials and Natural Resources sector experienced FPI growth in 2Q25, rising from 85.4 to 87.7. Despite this growth, the sector experienced pockets of distress. This aligns with the commodity market volatility observed in the first half of 2025, with base metals experiencing price swings and sharp declines in April amid escalating trade tensions. Despite this modest FPI improvement, significant headwinds persist — from disruptive trade policy shifts to the capital-intensive clean energy transition, compounded by falling oil prices and volatile natural gas markets.

      Agriculture and Husbandry suffered the sharpest FPI decline, falling from 93.9 to 92.3. This downturn reflects the disruptive impact of protectionist trade measures and export restrictions on global agricultural supply chains, compounded by reduced crop yields. While some commodities such as coffee saw price spikes due to weather shocks, overall sector performance remained subdued.

      Regional performance

      North America and Oceania posted modest improvements in 2Q25, rising by 0.9 points to 86.3 and 0.8 points to 74.5, respectively. In contrast, other regions experienced slight declines: Africa decreased by 0.6 points to 92.3, Europe by 0.5 points to 88.8 and Asia by 0.3 points to 91.5. South America registered the most significant drop, falling 0.9 points to 91.6.

      Sector performance across regions

      In the second quarter of 2025, different regions experienced varying performance in their sectors. Here is a breakdown of the regional comparisons:

      • Africa: Most sectors in the region saw a downturn, except Energy and Pharmaceuticals, which recorded FPI scores of 91.1 and 95.8, respectively. However, it should be noted that the Energy sector regionally faces pricing pressures and infrastructure slowdowns due to falling oil prices and tighter financing. Scores for Trading Companies and Distributors fell to 93.7. Rising trade tensions between the top economies are disrupting commodity markets and financial assets, casting a shadow over Africa's economic outlook over the medium term.
      • Asia: Sectors showed mixed performances, with strong results from the Tech and Logistics sectors but weakened results from Manufacturing due to reduced demand from the US. Packaging Products (97.5) and Biotechnology (97.0) led FPI growth, while the score for Agriculture and Husbandry declined to 93.17. Trade tensions, currency volatility and weak domestic demand continue to cloud the region's prospects, impacting trade-reliant economies. The west and east trade imbalance further underscores the need for stronger domestic consumption within the region.
      • Europe: Most sectors in Europe experienced a downturn this quarter, with Healthcare (87.7) and Energy (88.6) experiencing notable declines of 3.3 and 2.0 points respectively. Conversely, Raw Materials and Natural Resources (92.3) and Travel and Hospitality (91.7) showed resilience, rising 2.5 and 2.0 points. Escalating trade friction, retaliatory measures, weak consumer sentiment, and rising EU defense spending are all weighing on business and consumer confidence across Europe. Adjustments to EU climate policy and further trade countermeasures add to the mounting challenges.
      • North America: Sectoral performance in 2Q25 was uneven, reflecting broader economic headwinds. Biotechnology and Raw Materials and Natural Resources posted strong FPI gains, reaching 82.1 and 84.4 respectively, while Manufacturing activity slowed amid uncertainty surrounding trade restrictions. This divergence highlights the impact of escalating cross-border trade measures, ambiguity around tax reform, and ongoing deregulation. Agriculture and Husbandry saw the steepest decline, with FPI scores plunging 19.8 points to 67.2, driven by falling farm incomes, rising input costs, and unfavorable trade conditions. In contrast, Consumer Goods remained resilient, supported by nearshoring trends and strategic supply chain realignments.
      • Oceania: The region’s Media and Entertainment sector recorded the most substantial improvement in FPI scores, rising to 98.8. The Food and Beverages industry also saw a notable increase, reaching a perfect score of 100.0. In contrast, the Life Sciences Tools and Services segment experienced a sharp decline (dropping to 57.4) while the score for the Chemicals sector fell to 65.2.
      • South America: Healthcare (91.2) and Transportation and Logistics (92.8) sectors saw improvements, while Travel and Hospitality plummeted to 48.7. Trade-related supply chain disruptions and the ensuing financial market volatility have impacted on asset yields and interest rates, contributing to this uneven performance. Agriculture exports declined due to reciprocal trade actions, but Mining held steady, fueled by Asian demand. This sectoral performance reflects the impact of commodity price fluctuations, trade policy uncertainty, and financing constraints.

      Zombies

      Zombies are companies close to default, scoring zero on the KPMG FPI for three or more consecutive quarters.

      In the most recent quarter, the number of zombies increased by 8.1 percent to 1,435. The Raw Materials and Natural Resources sectors, as well as the Technology and Telecommunication sectors, contributed the highest share of zombies with around 19.2 and 12.4 percent respectively, followed by the Biotechnology sector with around 11.5 percent.

      Jurisdiction performance: Quarter-over-quarter biggest gainers and losers 

      An analysis of the KPMG FPI country data shows that, quarter-over-quarter, the largest gains in KPMG FPI scores were experienced by companies headquartered in Ireland (up 5.5 points to 91.2), New Zealand (up 5.4 points to 99.6) and India (up 3.5 points to 92.2).

      Quarter-over-quarter declines were observed in Bangladesh (down 4.1 points to 85.8), Argentina (down 4.1 points to 89.6), Thailand (down 3.0 points to 80.4) and Colombia (down 3.0 points to 91.6).

      Distressed jurisdictions

      Given the natural bias for the KPMG FPI to score well-performing companies at high levels (typically between 85 and 99), this index provides a significant opportunity to spot distressed companies that fall outside of the normal range.

      KPMG FPI is an index that combines traditional market performance indicators together with company, jurisdictions and industry specific financial performance indicators into a single index number. This allows KPMG FPI to identify why markets are behaving in a particular way and support those findings with data-backed insights into what is causing the movement. It has also been proven to identify insights earlier than traditional market indicators.

      In 2Q25, the KPMG FPI found 1,435 companies with a KPMG FPI score of zero. The largest concentrations of zero-indexed companies were headquartered in the US (403), Canada (253), Australia (181) and Hong Kong (SAR) (105).

      Please visit the Zombie section to find out more about significant underperforming companies.

      Methodology

      The KPMG Financial Performance Index measures the financial health of individual companies. Based on an initial pool of more than 40,000 companies globally, the KPMG FPI identifies those companies, sectors, regions, and jurisdictions that are performing well and those that are underperforming. A higher score on the KPMG FPI represents strong performance.

      The KPMG FPI model draws from the Logit Probability to Financial Default model (developed by John Campbell, Jens Hilscher and Jan Szilagyi), which is based on eight explanatory variables encompassing financial and market variables, to assess the overall financial health of a company. The KPMG FPI is based on raw data from S&P Capital IQ database.

      We release our insights publicly every quarter. However, the model can be run on any given day to reflect live market changes, so please reach out to your local KPMG member firm, or contact us at fpi@kpmg.com if you would like additional information.

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      Director, Turnaround and Restructuring, FPI Project Lead

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